Coast rental market just keeps tightening up

RENTING a home just got that bit harder on the Sunshine Coast with the latest REIQ Residential Rental Survey showing the region has the tightest vacancy rate in the state.

The survey, conducted at the end of September, shows rental markets remain tight in south-east Queensland and the state's major tourism centres.

REIQ CEO Antonia Mercorella said there was something of a two-tier effect still evident in the rental market with resource centres continuing to record weak market conditions of vacancy levels above 4%.

"On the Sunshine Coast, the vacancy rate is at 1%: the lowest of any major region in the state," Ms Mercorella said.

"Population growth and a lack of investor activity are contributing to these tight conditions, particularly in hinterland areas where agents are struggling to find enough rental properties to meet demand."

REIQ Sunshine Coast zone chair Amber Werchon said rentals were even tighter in the coastal suburbs.

"We are seeing rental demand being driven by the migration of more residents to the Sunshine Coast, namely created through increased employment opportunities with the development of the Sunshine Coast Public University Hospital, Maroochy city centre and road infrastructure.

"People relocating from other states for lifestyle reasons are also influencing rental demand.

"Often people like to try before they buy, leading them to rent a property initially.''

As the weather warms up, so does rental demand.

Century 21 on Duporth business development officer Leanne Kerr said as soon as the warmer weather hit, tenants were looking to move.

"During spring and summer, the properties that are in greatest demand are those that have air-conditioning, pools or are in close proximity to the beach.

"About 85% of landlords will not accept a pet at their property or body corporate by-laws preclude the keeping of a pet at a property.

"Properties that will take a pet are in very high demand and hotly contested by a very large database of potential tenants.''

Most of the tenants applying for rental properties were tradespeople moving to the area to work on the new hospital, Ms Kerr said, but many applications were from fly-in, fly-out workers wanting the Sunshine Coast lifestyle and weather.

"There has been a trend in recent months for fully furnished units from both tradies, who are usually only here on contract, and from fly-in, fly-out workers who can just pick up their belongings and leave if and when they decide to re-locate to another area," she said.

"This tenant base prefers six-month leases.''

Another major demographic is the sea-changers who want to try before they buy. "They like to establish themselves here and then decide what suburb they would like to live in and whether or not they will be buying a unit or a house,'' Ms Kerr said.

"For other tenants, renting rather than buying just comes down to economics and for this reason we find that dual occupancy dwellings are highly sought after.''

Most tenant applications in recent months had been from couples, Ms Kerr said, in the 20-something bracket.

The high demand for rentals is seeing a lift in property sales due to investor activity.

Elders' property manager Mark Buchan said there was an undeniable demand for the semi-rural charm of the hinterland compared with more built-up areas closer to the coast.